US Dollar Surges After Markets Begin Pricing in Fed Rate Hikes Later This Year

Other central banks have signaled a tighter-for-longer monetary policy stance amid the war in Iran.

Federal Reserve Chair Jerome Powell speaks at a news conference following the Federal Open Market Committee meeting in Washington on March 18, 2026. Madalina Kilroy/The Epoch Times

The U.S. dollar surged during the March 20 trading session after investors began pricing in a Federal Reserve rate hike later this year.

The U.S. Dollar Index—a measure of the greenback against a weighted basket of currencies—climbed 0.5 percent, adding to its year-to-date gain of 1.4 percent.